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Once a public authority has decided to set up a PPP, its role is not to execute the work but to govern, i.e. to set up the administrative, legal and financial procedures needed for proper execution of the contract.
The purpose of a PPP is to leverage synergies and complementary capabilities that exist between the public and the private sector. It does this through ongoing cooperation and joint discussion of the objectives to be achieved and the structures to be built.
The role of the public authorities is to:
- Identify local development and infrastructure needs
- Determine which projects should be given priority based on their benefits
- Choose the most suitable management method after comparing all the costs and benefits of the various forms of contract
- Establish efficient procedures for launching projects, executing contracts and minimising costs
- Define the structures’ functions
- Ensure that the service is accessible to the various categories of users
- Work with the private sector operatorto define and adapt the pricing policy
- Set up efficient reporting and control procedures
The role of the private sector is to:
- Propose innovative, high-quality solutions to the public authorities, as part of tendering procedures
- Propose the most appropriate financing solutions to the public authorities
- Maximise the overall efficiency of the contract from design to maintenance
- Assumethe risks related to its expertise
- Optimise pricing policy, striking a fair and appropriate balance between the need for profitability and the need to provide users with maximum service quality
- Reach out to users and get to know them in order to understand and anticipate their needs and make adjustments in the services provided
- Manage the human resources involved in the PPP, so as to strike a balance between flexibility and progress
- Leverage research and development work and innovate at all phases of a contract to adapt to a changing environment